For decades, Arizona has been known for its Five C’s — climate, cattle, cotton, copper and citrus — but it may be time to add a new “C” to the list: chips. The semiconductor industry is not entirely new to Arizona. Intel has been operating here for several decades, and Microchip and ON Semiconductor have also been successful over the years. But the recent announcement of Taiwan Semiconductor Manufacturing Company’s investment of $40 billion to set up a manufacturing facility in Arizona has brought the industry into the limelight like never before. And for good reason.
The semiconductor industry is a game-changer for Arizona in many ways. For starters, it will diversify the state’s economy, which has been heavily dependent on tourism and agriculture for decades.
But why is the semiconductor industry so critical for Arizona, and how will it impact the state’s future?
Semiconductors are the building blocks of modern electronics and are found in everything from smartphones to automobiles to medical devices. As the demand for these devices continues to grow, so does the need for semiconductors, leading to a surge in semiconductor manufacturing. Evidence of this surge is seen with companies like Intel and TSMC building new fabs (fabrication facilities) in Arizona.
One of the key benefits of this influx of semiconductor manufacturing is the creation of new jobs. According to a recent Arizona Office of Economic Opportunity report, the semiconductor industry is expected to create over 6,000 new jobs in the state by 2024. These jobs will range from highly skilled positions in engineering and research to more entry-level jobs in manufacturing and assembly. And the industry’s presence will create a ripple effect on other sectors, including construction, logistics and software. Companies that supply the semiconductor industry will also set up shop in the state, generating additional job opportunities.
But it’s not just about jobs. The semiconductor industry is also bringing a wealth of knowledge and expertise. For example, Intel has partnered with Arizona State University to create the Global Semiconductor Alliance Center of Excellence, which aims to promote collaboration between academia and industry in the semiconductor field. This partnership will help to train the next generation of semiconductor engineers and researchers and will also help to drive innovation in the industry.
The semiconductor industry is known for its high level of collaboration and innovation. As companies work together to develop new technologies and processes, they also share knowledge and expertise, leading to a more vibrant and diverse ecosystem. This collaborative spirit is already evident in Arizona with the establishment of the Arizona Technology Council’s new Semiconductor Industry Association chapter. This chapter will bring together leaders from across the industry to share knowledge and collaborate on new projects and initiatives.
Arizona’s semiconductor industry’s growth is poised to create a more diverse and richer ecosystem. With new jobs, increased collaboration and innovation, and a focus on education and training, Arizona is well-positioned to become a leader in the semiconductor industry, not just in the United States but globally. TSMC’s investment is one of the largest foreign investments in U.S. history and the largest in Arizona, making it a significant win for the state. With its location and skilled workforce, Arizona will become a hub for technology and innovation.
So, while the Five C’s will continue to be a part of Arizona’s history, the semiconductor industry will undoubtedly shape its future. The industry’s presence in the state will diversify its economy, generate high-value jobs, drive innovation and attract investment. Overall, the semiconductor industry’s arrival in Arizona is a significant win for the state, so it’s time to add that new “C” to the list.
Martijn Pierik is co-founder and executive chairman at Kiterocket.
